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Production Planning


34theletterbetweenB&D

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 Lifted from the Collector's club thread, is this interesting information, underlined emphasis is mine.

...We have to add the relatively small quantity of club models onto our main production runs to enable them to come to market. With a new tooling, it is easier to plan a limited edition for the club as we have a clearer idea of when the R&D function is complete, and when production will take place. Therefore, normally we always try to produce a club model on the new tooling...

There's the reality of organising the production of models in a Chinese factory owned by the parent business of the company office in the UK. By implication, it is not easy to predict accurately when production runs will happen, the best 'fix' available on production run timing is when new tooling is first introduced to production.

 

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Surely it's not that difficult, we use about 250 different parts in our aluminium tubs and schedule parts for different product lines daily and weekly...

 

It's a model train with a few plastic bits, can't believe what all the fuss is about.

 

The problem is Martin, from my experience with dealing with Chinese manufacturers in the late 90s,that:

 

1.   You are dealing with the Chinese, at x thousand miles remove, physically and culturally

2.   The difficulty of ensuring that the parts are in the right place at the right time

3.   That the 'production slot or slots' is available at the same time and everything runs as it should.

4.   Most importantly, that you have reliable (preferably Chinese) 'eyes on the ground' to ensure QC is as it should be

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I think what most people forget is that the same factories are producing models for many other markets including the US and that slots for our models are vying for these. Bachmann UK may not necessarily know exactly what, say, Bachmann US and Bachmann China are producing at any one time.

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And don't even think for one moment that they necessarily confine themselves to model railways.

 

However I too am mystified by the Bachmann statement - indeed the whole statement (produced elsewhere) raised more questions than it answered.  I fail to see how R&D involvement fixes a production run when a re-run of an existing model (which presumably has minimal R&D involvement) is somehow disadvantaged.

 

What I do understand however is that the production of a special run (livery variant + perhaps some minor changes - different dome or chimney) of say 500 items, is easier to do if it is part of a much longer run of the base model.  Why this has to be new tooling is however a mystery, unless there are other completely undisclosed reasons - which might conceivably have something to do with cash flow.  First runs (= new tooling) might be expected to sell quickly, whereas re-runs (even in new livery) may well sell less quickly.

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The Collectors Club has a 3-4 monthly cycle .You cant stop production of new models to slot in a run of an  earlier model  just for a 504 limited run so the the CC special is produced from the latest new release to be on the production line at the time .Hence  S&D 4F  J11, NRM 2-4-2 .etc..Thats how I read it.

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I think what most people forget is that the same factories are producing models for many other markets including the US and that slots for our models are vying for these. Bachmann UK may not necessarily know exactly what, say, Bachmann US and Bachmann China are producing at any one time.

 

I think at least some of the different Kader/Bachmann companies must talk to each other. Both Bachmann Branchline and Liliput have the same Plasser & Theurer Tamping Machine in their current catalogues (both are HO) and it would make sense if they were produced as one longer production run.

 

However, the respective pricing is interesting. We complain about UK prices being on the rise; this model should allow a direct comparison. According to its website, Bachmann Branchline offers the tamper motored for £59.70 and un-motored for £25.05, whereas Liliput offers it in three versions (DB, SNCB and CD) as DCC On Board (only) for £127.40. The only difference appears to be the railway company branding and coupling - all are painted yellow, and the price of the decoder. So £67.70 for a decoder...???

 

Liliput version: http://www.Bachmann.co.uk/image_box.php?image=images1/liliput/L136100.jpg&cat_no=L136100&info=0&width=600&height=199

 

Branchline version: http://www.Bachmann.co.uk/image_box.php?image=images1/branchline/36-160A.jpg&cat_no=36-60A&info=0&width=650&height=256

 

Clearly there's an element of what the market will bear in the pricing.

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The Collectors Club has a 3-4 monthly cycle .You cant stop production of new models to slot in a run of an  earlier model  just for a 504 limited run so the the CC special is produced from the latest new release to be on the production line at the time .Hence  S&D 4F  J11, NRM 2-4-2 .etc..Thats how I read it.

 

 

 

That much is clear and I fully agree.

 

What is unclear (to me at least) is why it has to be a new tooling model and not an add on to a re-run of a previously issued model.  Or maybe they are not re-running any previous models - shades of Hornby and some of its problems with tools perhaps.

 

Remember the Bachmann statement was in response to the question of why another steam loco and not a diesel.  Personally I am delighted with their choice, but it clearly has not pleased all.

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Andy Hayter, on 10 Mar 2014 - 10:46, said:

What is unclear (to me at least) is why it has to be a new tooling model and not an add on to a re-run of a previously issued model.

The important thing is it can be, and there's probably more "wiggle room" around the first batches of new production than for "known quantities". In general there will be considerably more interest in a new tooling LE available at short notice than an LE of an previous model, but the pattern has always been that of something in current production.
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...However I too am mystified by the Bachmann statement - indeed the whole statement (produced elsewhere) raised more questions than it answered.  I fail to see how R&D involvement fixes a production run when a re-run of an existing model (which presumably has minimal R&D involvement) is somehow disadvantaged.

 

What I do understand however is that the production of a special run (livery variant + perhaps some minor changes - different dome or chimney) of say 500 items, is easier to do if it is part of a much longer run of the base model.  Why this has to be new tooling is however a mystery, unless there are other completely undisclosed reasons - which might conceivably have something to do with cash flow.  First runs (= new tooling) might be expected to sell quickly, whereas re-runs (even in new livery) may well sell less quickly.

Yes, the cash flow / cost recovery aspect that is very much part of the new introductions cycle seems to me the likely (undisclosed) cause. Possibly some centralised 'parent' management that gives weight to the need of all the various product line organisations their factories supply to get new tooling investment into its first production run quickly once the development phase is done, simply so that they get past the cost recovery point and into a profit return as fast as possible. Without that the various product line organisation's individual development efforts could be limited temporarily, by reduction in cash flow.

 

The 'point' of this thread. A little appreciation that for the people engaged in this model production process, life ain't so simple. 

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Bachmann does its own Collectors Club models off new tooling but limited editions for outside organisations are specifically not allowed off new tooling, hence Model Rail's S&T liveried SR Pillbox brake van now in preparation for the second run of this model.

CHRIS LEIGH

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